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Are you in the market for a hot domain name? Then it is vital that you understand just how important it is to find the right name. There are several factors that should be considered before choosing the name of a domain if you intend to develop any kind of online presence.

Premium Domain Brokers only deals with high-potential domains because we are passionate about helping online entrepreneurs succeed. This what we do and we are very good at spotting what works and what doesn’t. Here is what you need to know before choosing a domain name that is right for you.

Understanding the Value of a Premium Domain

The value of a domain name is typically estimated based on several easily observable factors, such as the length of the name itself, the type of extension (TLD) used, the inclusion of popular search terms, and the overall applicability of the name within the targeted niche.

While such attributes have historically been given top priority during the domain comparison and acquisition process, these basic features do not address other business-oriented criteria that can contribute to the value of a domain, such as the implications the name will have for your company’s Intellectual Property strategy, or the defensive value of using a generic domain name in a competitive marketplace.

Putting Domain Name Value into Perspective

There are two distinct ways to perceive the value of a domain name:

A. How much would a buyer be willing to pay for this domain name by itself?(Popular approach)
B. How much can this domain name do for my organisation’s website and marketing endeavours? (Less common approach)

While the more popular approach offers a one-size-fits-all solution, which may be ideal for domain brokers and people who buy and flip domain names in bulk, it is not the best option for the individual company looking for the perfect domain. We believe that the less common approach will always be more lucrative in the long-term.

Unfortunately, most domain name valuations only take the first approach into account, thereby neglecting to consider the intrinsic value that a name might have for a specific company in a specific industry.

Debunking Conventional Misconceptions

Here are a few good example domain names that illustrate how the conventional approach is flawed:

1. Barclays.co.uk

2. HouseofFraser.co.uk

3. TopCashBack.co.uk

The above three domains are all ranked within the top 100 most popular websites in the UK, and they’re all ranked in the top 10,000 websites as far as global traffic is concerned. However, ask yourself this:

If you had never heard of Barclays or House of Fraser, and you saw those domain names available for sale, would you think to yourself, “Wow, that Barclays.co.uk is destined to be a mega site,” or would you pass over it uninterested? Those domain names worked for those companies because they fit with the associated established brands, not because the names themselves were ultra-valuable.

Now let’s look at the third example “TopCashBack.co.uk.” Yes, it has keyword content and it sounds good, but if you had to assign value to the name alone based on conventional appraisal techniques, before the site was ever built, would you have guessed that it could become a top 100 site in the UK?

What does all this tell you? It means there’s a lot more to domain valuation than meets the eye. Taking any domain name at face value without factoring in an overall branding and site development strategy is a common oversight, but one that can be avoided with the right research and guidance.

How We Can Help

We take a multi-faceted approach to domain name valuation, acquisition, brokerage, and sales. In basic terms, we help both the buyers and owners of premium domains in the process of finding the perfect domain for their budget, goals, and preferences, or selling a premium domain name for the best price possible. With our extensive industry knowledge and diverse domain & client portfolio, we match the right buyer to the right domain in every case.

We currently manage a portfolio of more than 1000 premium domain names, with the vast majority having .co.uk extensions. As such, we specialise in helping our clients buy and sell domain names and websites that are geared towards more localised sectors throughout the UK, as well as in global markets.